Military Spouse Filing State Taxes in VA

Forum|Forum|5 years ago
February 6, 2021
1 reply
0 views

I am a military spouse, we are currently stationed in VA. Our HOR is in CA. I did some Independent Contract work during the year in VA, totaling under $3k. We file the CA return each year, but I'm being prompted by Turbotax that I need to file separately in VA. This doesn't feel accurate.

Do I need to file state taxes for VA? Or just in CA?

DanaB27

It depends on the kind of self-employment you had in Virginia if your self-employment income is taxable in VA and you have to file a VA state tax return.

From VA Tax Military Spouses FAQ:

A spouse's income from self-employment may or may not qualify for the exemption, depending on the type of business in which the spouse is engaged.

Income you earn from self-employment is exempt from Virginia income tax if the primary source of income from your business is derived from your performance of a service. If your business employs others and/or utilizes significant capital (equipment, vehicles, etc.), then the income you derive from the business will not be exempt from Virginia income tax. For additional information, see Tax Bulletin 10-1.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

JMachSl87Author

It is online tutoring income.

I'm being prompted that I need to file a resident tax return for VA via turbotax, which I know it's not correct. When I try and select that we need a nonresident return, it's showing that I need to file a married file separate return, which also doesn't seem correct.